EPA urged to proceed with caution on higher ethanol blends

EPA has told Growth Energy, the ethanol trade group that had petitioned the agency to raise the limit, initial tests have shown higher ethanol levels were safe. But the agency deferred a final judgment on E-15, so called because the fuel could be 15 percent ethanol, until additional tests from the Energy Department.

That decision drew a mixed response from the industry.

The groups have alternately argued that higher ethanol levels can damage engines and create safety concerns by causing engines to malfunction. Ethanol producers say higher blends levels are safe. (UPDATE: Here's a paper from Growth Energy on E-15) (UPDATE II: And here's the counterargument from the Environmental Working Group).